The Canadian Association of Oilwell Drilling Contractors has revised its fourth quarter drilling forecast downward in the face of what it calls the oil and gas industry’s most difficult time in a generation.
The association is now projecting just over 3500 wells drilled this year, 25-percent fewer than its original forecast back in November.
The number of rigs are down, as are the number of operating days and the group estimates employment in the sector has dropped by over 34,000 jobs in two years.
CAODC President Mark Scholz says the industry will eventually rebound but in the meantime governments are creating an uncompetitive environment.
“We certainly aren’t getting a lot of support from our government in terms of really helping us position the industry for the upside. We’ve seen the introduction of the carbon tax, and higher corporate taxes in Alberta and of course we’ve seen the compounded effects of delays in new pipelines and LNG approvals creating significant investment uncertainty.”
Scholz says you’d have to go back to the ’80s to see the dismal stats we’re seeing now.
“My members and the businesses and certainly the workers who operated through the ’80s, they are telling me this is certainly worse than what we experienced back then. There’s been a significant amount of damage in the job market because of the downturn and it’s going to be hard for us to come out of this.”